Daimler Truck hit by US tariffs and weak North American demand
First Quarter Financial Performance and Market Impact
By Amir Orusov
May 6 (Reuters) - Daimler Truck's first-quarter operating profit more than halved, hit by historically weak demand and import tariffs in its North American market, the German company said on Wednesday.
North American Market Slowdown
The performance reflected a sharp slowdown in North America, where sales fell by a quarter to 29,432 vehicles in an autos sector dealt a hefty blow by import tariffs imposed by U.S. President Donald Trump's administration.
Tariff Headwinds
The Trucks North America division continues to face "tariff headwinds, with full tariff effects" reflected in the first quarter for the first time, group finance chief Eva Scherer said in a statement.
Financial Results Overview
On a group level, adjusted operating profit was 498 million euros ($583.56 million), down from 1.08 billion euros a year earlier.
Cost Breakdown
The sales decline, import tariffs and adverse currency effects cost the North American arm 624 million euros in the quarter, the group said in presentation slides.
Return on Sales
Adjusted return on sales in North America fell to 5.4% from 14.4% in the same period last year.
Outlook and Signs of Recovery
However, Daimler Truck confirmed its full-year outlook, saying it saw early signs of potential demand recovery in the U.S. truck market with an 86% increase in North American orders.
Market Reaction
The upturn in orders was "far better than hoped", a Frankfurt-based equities trader said, and chimed with reports from rivals Traton and Volvo.
($1 = 0.8534 euros)
(Reporting by Amir OrusovEditing by Christoph Steitz and David Goodman)
